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MANILA, Philippines – Liberty Telecoms Holdings Inc. was suspended by Philippine Stock Exchange Inc. (PSE).
Liberty Telecoms is now controlled by the two giant telco companies, which are PLDT and Globe. Globe controls the company through its parent firm Vega.
The public float of the company plunged below 10 percent, which is the minimum requirement of block sale-compliant listed companies on Friday. The announcement was done by PSE on the weekend.
PSE stated that the shares for public offering declined due to the market’s block sale on November 4, which is intended for its minority shareholders’ shares auction. PSE added that this is the company’s way of pursuing of getting removed from the list voluntarily.
On Friday, the public float of the company is anticipated by its management to decrease from 12.82 percent to 4.55 percent following the block sale.
Roel Refran, PSE Chief Operating Officer, stated that the local stock market respects the company’s pursuance of going private.
Refran added that they value businesses’ decision of going private though they encourage companies to be listed. In addition, the said transaction is now being discussed with important regulatory agencies.
Through a disclosure to the PSE, the company declared its offered shares’ cross date and its accompanying suspension in trading.
From August 24 to October 29, the company had an exercise of tendering offer subsequent to its request to be delisted from PSE. The shares opened at P2.20 per piece. Nonetheless, this was not welcomed by its minority shareholders stating that each share should have been offered at P5.
The minority shareholders also contested how Liberty Telecoms was evaluated since its 700 megahertz radio frequencies were not accounted for valuation report and fairness opinion.
Once PSE approves the petition, the company will be delisted on November 21.
During the first half of the year, the management disclosed a net loss of P158 million, which is lower than its last year record of P427 million.